Artificial intelligence is infiltrating ad tech

Ad tech has AI fever.Programmatic platforms like Rocket Fuel and Huddled Masses are increasing their use of AI and machine learning to determine which impressions they’re unlikely to win and should avoid bidding on to reduce their infrastructure costs. Last week, Rubicon Project agreed to pay nearly $40 million to acquire nToggle to solve this very problem. Media agencies like Maxus are also using AI to rearrange their data more efficiently. And publishers like CafeMedia use AI to tag and organize their inventory. But despite AI’s growing popularity, its usage in advertising remains confined to niche areas. “There is definitely more smoke than fire in the marketplace right now,” said Rick Greenberg, CEO of ad agency Kepler Group, which built its own platform that uses AI to consolidate reporting across various types of data vendors. “But I do believe AI is starting to be used in useful, but limited, ways.” Liane Nadeau, vp of programmatic media at ad agency DigitasLBi, said a practical use of AI for ad buyers is using it to change the ad units shown to targeted users in real time, which is a technology that companies like Sizmek and Xaxis have invested in. Just as targeting…

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